Now the Obama administration is using the authority in TARP to push through a bankruptcy plan for Chrysler.
It sets a very bad precedent. Under the plan, Chrysler's secured creditors, you know the people that loan Chrysler money, will get screwed in favor of the UAW.
The kicker is now those creditors, that Obama wanted to push out have filed in court that it violates their 5th amendment rights.
Remember all the Dems that said Bush was trying to destroy the consitution? Yeah....right.
15. Relying on purported authority provided by TARP, the Treasury Department is demanding that Chrysler’s assets be stripped away from the coverage of the Senior Lenders’ liens – thereby impairing the rights of the Senior Lenders to realize upon those assets – so that those assets may be put in New Chrysler and used to the benefit of unsecured creditors in this proceeding, who will then be paid much more than the Senior Lenders. But, even assuming that TARP provides the Treasury Department with authority to provide funding to the Debtors and impose the transfer of collateral away from the Senior Lenders, TARP was enacted long after the Senior Lenders contracted with the Debtors and received senior liens on the Debtors’ property. Radford specifically disallowed the use of a law to retroactively alter existing liens on property.
God I hope this goes to the SCOTUS and I hope they strike TARP down as unconsitituional once and for all.